Germany needs to spend more, former Bulgarian official says

With the eurozone struggling to grow, a lot of eyes are glancing toward Germany, even though hopes are low that the country will abandon its frugal ways.

In the second quarter, the German household savings rate was 9.2%, compared to 5.4% in the U.S., according to data compiled by FactSet Research.

Former Bulgarian finance minister Simeon Djankov told a Peterson Institute for International Economics event on Thursday that Germany need to do something about overall growth in the region.

“The camp of German supporters of the ‘we need to stick to our guns,’ the conservative way, is shrinking,” Djankov said. “You can stick to your guns for a few years, but if everyone around you isn’t growing, you have to do something.”

European Central Bank President Mario Draghi, in a press conference, also Thursday, called on countries to step up as well to bolster growth. Read more on Draghi.